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Copyright © 2010 The Pew Charitable Trusts
901 E St. NW, 10th Floor, Washington, D.C. 20004 I 2005 Market St., Suite 1700, Philadelphia, Pa. 19103
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THE PEW CHARITABLE TRUSTS
The Pew Charitable Trusts applies the power of
knowledge to solve today’s most challengingproblems. Pew employs a rigorous, analytical
approach to improve public policy, inform the public
and stimulate civic life. We partner with a diverse
range of donors, public and private organizations
and concerned citizens who share our commitment
to fact-based solutions and goal-driven investments
to improve society. For additional information
on The Pew Charitable Trusts, please visit
www.pewtrusts.org.
THE PEW ENVIRONMENT GROUP
The Pew Environment Group promotes practical,
meaningful solutions to some of the world’s most
pressing environmental problems.
Joshua Reichert, Managing Director
Phyllis Cuttino, Project Director
Laura Lightbody, Senior Associate
Jessica Frohman Lubetsky, Senior Associate
Brendan Reed, Associate
ABOUT THE REPORT
The Pew Charitable Trusts’ Who’s Winning the
Clean Energy Race? was developed for public
informational and educational purposes. It reviews
the status of clean energy finance and investment
in the countries that make up the Group of Twenty
(G-20).1 This report complements The Clean Energy
Economy: Repowering Jobs, Businesses and
Investments Across America , produced by the PewEnvironment Group and the Pew Center on the
States in June 2009.
The underlying data for this report were compiled
for the Pew Environment Group by Bloomberg New
Energy Finance, the world’s leading provider ofnews, data and analysis on clean energy and carbon
market finance and investment. Bloomberg New
Energy Finance’s global network of 125 analysts
stationed across Europe, the Americas, Asia and
Africa continuously monitor market changes, deal
flow and financial activity, allowing instantaneous
transparency into the clean energy and carbon
markets.
A description of the data collection methods and
practices employed for this report can be found in
the appendix.
ACKNOWLEDGMENTS
We are grateful to our research collaborators at
Bloomberg New Energy Finance, led by Chris
Greenwood with Michael Wilshire, Rachael Norby,
Krishnan Shakkottai, Ethan Zindler, Rob Glen and
Ken Bruder. We also thank David Harwood of Good
Works Group for his work in completing this report.
We also thank staff members of the Pew Center on
the States for their insights, advice and guidance
at critical stages of this project. We are especially
grateful to Kil Huh and Lori Grange for generously
sharing their ideas and suggestions. While they
have screened the report for accuracy, the Pew
Environment Group is responsible for its findings
and conclusions.
1 The Group of Twenty (G-20) was established in 1999 to bring together systemically important industrialized and developing economies to discuss key issues in the global
economy. The G-20 is made up of the finance ministers and central bank governors representing the European Union and 19 countries: Argentina, Australia, Brazil, Canada,
China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom and the United States.
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TABLE OF CONTENTS
EXECUTIVE SUMMARY ................................................................................................................................ 4
THE EMERGING CLEAN ENERGY ECONOMY ............................................................................................ 6
Global Investments in Clean Energy Are Growing .................................................................................. 6
Global and G-20 Clean Energy Investment, 2005 to 2009 ...................................................................... 7
China Takes the Lead, While the U.S. Slips ............................................................................................. 7
Domestic Policy Choices Play a Critical Role......................................................................................... 10
Wind and Solar Lead Investments ........................................................................................................ 10
Asset Financing Dominates ................................................................................................................... 11
Renewable Capacity Growing Worldwide ............................................................................................. 11
Governments Allocate Stimulus Funds to Clean Energy ....................................................................... 11
About the Investment Data ................................................................................................................... 12
THE GLOBAL CLEAN ENERGY ECONOMY AT A GLANCE ...................................................................... 14
Overall ................................................................................................................................................... 14
Competitiveness Snapshots of G-20 Members .................................................................................... 14
Asset Financing Dominates ................................................................................................................... 16
Public Market Financing ........................................................................................................................ 17
Venture Capital/Private Equity Financing ............................................................................................... 18
Installed Renewable Energy Capacity ................................................................................................... 19
G-20 Stimulus Funding for Clean Energy .............................................................................................. 20
G-20 COUNTRY PROFILES .......................................................................................................................... 21
Argentina ............................................................................................................................................... 22
Australia ................................................................................................................................................. 23
Brazil ...................................................................................................................................................... 24
Canada ................................................................................................................................................... 25
China ..................................................................................................................................................... 26
France .................................................................................................................................................... 27
Germany ................................................................................................................................................ 28
India ....................................................................................................................................................... 29
Indonesia ............................................................................................................................................... 30
Italy ........................................................................................................................................................ 31
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Japan ..................................................................................................................................................... 32
Mexico ................................................................................................................................................... 33
South Africa ........................................................................................................................................... 34
South Korea ........................................................................................................................................... 35
Spain ...................................................................................................................................................... 36
Turkey .................................................................................................................................................... 37
United Kingdom ..................................................................................................................................... 38
United States ......................................................................................................................................... 39
Rest of EU-27 ........................................................................................................................................ 40
APPENDIX: METHODOLOGY ...................................................................................................................... 41
TABLE OF FIGURES
Figure 1. Financial Investment in Clean Energy: Global Trends by Quarter ............................................. 6
Figure 2. Top 10 in Total Installed Capacity.............................................................................................. 7
Figure 3. Top 10 in Increase in Installed Capacity .................................................................................... 7
Figure 4. Top 10 in Overall Clean Energy Investment ............................................................................. 7
Figure 5. Five-Year Growth in Rate of Investment................................................................................... 7
Figure 6. G-20 Members’ Investment in Clean Energy and Their Rank .................................................. 8
Figure 7. Top 10 in Investment Intensity ............................................................................................... 10
Figure 8. Sustainable Energy Financing Continuum .............................................................................. 13
Figure 9. Investment by Financing Type, 2009 ...................................................................................... 15
Figure 10. Investment by Sector, 2009 ................................................................................................. 15
Figure 11. Asset Finance by Sector, 2004-09 ........................................................................................ 16
Figure 12. Asset Finance by Sector, 2009 ............................................................................................. 16
Figure 13. Public Market Investment by Sector, 2004-2009 ................................................................. 17
Figure 14. Public Market Investment by Sector, 2009 .......................................................................... 17
Figure 15. Venture Capital/Private Equity Financing by Sector, 2004-09 ............................................... 18
Figure 16. Venture Capital/Private Equity Financing, 2009 .................................................................... 18
Figure 17. Installed Renewable Energy Capacity: Wind, Biomass and Waste, and Small Hydro .......... 19
Figure 18. Installed Renewable Energy Capacity: Solar, Geothermal and Marine ................................. 19
Figure 19. Stimulus Funding .................................................................................................................. 20
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Executive Summary
This report documents the dawning of a new worldwide industry—clean energy—which has experienced
investment growth of 230 percent since 2005. Demonstrating its strength, the clean energy sector
declined only 6.6 percent in 2009 despite the worst financial downturn in over half a century. In 2009,
$162 billion was invested in clean energy around the world. Rebounding from a sharp downturn in the last
quarter of 2008 and first quarter of 2009, clean energy investments in the G-20 averaged a robust $32
billion in each of the last three quarters of 2009. In an encouraging sign for the future, many governments
prioritized clean energy within economic recovery funding, the bulk of which will reach innovators,
businesses and installers in 2010 and 2011. Clean energy investments are forecast to grow by 25 percent
to $200 billion in 2010.
Accounting for more than 90 percent of worldwide finance and investment, G-20 countries dominate the
clean energy landscape. As the country profiles in this report demonstrate, virtually all G-20 countries have
seen investments grow by more than 50 percent over the last five years.
Within the G-20, our research finds that domestic policy decisions impact the competitive positions of
member countries. Those nations—such as China, Brazil, the United Kingdom, Germany and Spain—with
strong, national policies aimed at reducing global warming pollution and incentivizing the use of renewable
energy are establishing stronger competitive positions in the clean energy economy. Nations seeking to
compete effectively for clean energy jobs and manufacturing would do well to evaluate the array of policy
mechanisms that can be employed to stimulate clean energy investment. China, for example, has set
ambitious targets for wind, biomass and solar energy and, for the first time, took the top spot within the
G-20 and globally for overall clean energy finance and investment in 2009. The United States slipped to
second place.
There are reasons to be concerned about America’s competitive position in the clean energy marketplace.
4 WHO’S WINNING THE CLEAN ENERGY RACE?
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Relative to the size of its economy, the United States’ clean energy finance and investments lag behind
many of its G-20 partners. For example, in relative terms, Spain invested five times more than the United
States last year, and China, Brazil and the United Kingdom invested three times more. In all, 10 G-20
members devoted a greater percentage of gross domestic product to clean energy than the United States
in 2009. Finally, the Unites States is on the verge of losing its leadership position in installed renewable
energy capacity, with China surging in the last several years to a virtual tie.
The U.S. policy framework for reducing global warming pollution and promoting renewable energy
remains uncertain, with comprehensive legislation stalled in Congress. On the other hand, America’s
entrepreneurial traditions and strengths in innovation—especially its leadership in venture capital
investing—are considerable, giving it the potential to recoup leadership and market share in the future.
Policy, investment and business experts alike have noted that the clean energy economy is emerging as
one of the great global economic and environmental opportunities of the 21st century. Local, state and
national leaders in the United States and around the world increasingly recognize that safe, reliable, clean
energy—solar, wind, bioenergy and energy efficiency—can be harnessed to create jobs and businesses,
reduce dependence on foreign energy sources, enhance national security and reduce global warming
pollution.
Nations seeking to compete effectively for clean energy jobs and manufacturing would do well to evaluate
the array of policy mechanisms that can be employed to stimulate clean energy investment. This is
especially true for policymakers in the United States, which is at risk of falling further behind its G-20
competitors in the coming years unless it adopts a strong national policy framework to spur more robust
clean energy investment.
GROWTH, COMPETITION AND OPPORTUNITY IN THE WORLD’S LARGEST ECONOMIES
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GLOBAL INVESTMENTS IN CLEAN
ENERGY ARE GROWING
A new worldwide industry is dawning. Pew found
that overall investment in clean energy grew
230 percent from 2005 to 2009. In 2009, $162
billion was invested globally.2 In the face of the
world economic downturn, 2009 investments
declined only 6.6 percent from the year before.
Demonstrating its staying power, the clean energy
sector outperformed the oil and gas industry, whichhad investment declines of 19 percent in 2009,
according to the International Energy Agency’s 2009
World Energy Outlook .
The Emerging Clean Energy Economy
2 All monetary values are 2009 U.S. dollars unless otherwise noted.
Non-G-20 Countries
G-20 Countries
4th3rd2nd1st4th3rd2nd1st4th3rd2nd1st4th3rd2nd1st4th3rd2nd1st4th3rd2nd1st
2004 2005 2006 2007 2008 2009
$5.1
$3.2 $3.7
$5.7
$8.3$9.1 $9.2
$12.6$13.3
$20.8
$16.9
$27.0
$24.2 $24.3
$29.2
$43.6
$28.4
$38.3 $38.0
$29.6
$20.0
$35.4
$31.4
$35.1
FIGURE 1. FINANCIAL INVESTMENT IN CLEAN ENERGY: GLOBAL TRENDS BY QUARTER (billions of $)
FIGURE 2. TOP 10 IN RENEWABLE
ENERGY CAPACITY (GW)
United States 53.4
China 52.5
Germany 36.2
Spain 22.4
India 16.5
Japan 12.9
Rest of EU-27 12.3
Italy 9.8
France 9.4
Brazil 9.1
FIGURE 3. TOP 10 IN FIVE-YEAR
GROWTH IN INSTALLED CAPACITY
South Korea 249%
China 79%
Australia 40%
France 31%
India 31%
United Kingdom 30%
Turkey 30%
United States 24%
Canada 18%
Rest of EU-27 17%
Investment to Rise 25 Percent
The ongoing priority for energy
security, global warming
pollution reduction and job
creation will drive investment
up 25 percent to a record $200billion in 2010, Bloomberg New
Energy Finance forecasts.
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GLOBAL AND G-20 CLEAN ENERGY
INVESTMENT, 2005 TO 2009
Installed renewable energy capacity increased in2009 to 250 gigawatts (GW), enough to power an
estimated 75 million households and equivalent to 6
percent of the worldwide total.
G-20 nations account for more than 90 percent of
worldwide finance and investment, dominating the
clean energy landscape. Excluding basic research
and development (R&D), more than $110 billion
was invested in the G-20’s clean energy sector.
Investment by virtually all G-20 countries has grown
by more than 50 percent over the past five years.
Rebounding from a sharp downturn in late 2008 and
early 2009, clean energy investments in the G-20
averaged a robust $32 billion in each of the last
three quarters of 2009.
In an encouraging sign for the future, many
governments prioritized clean energy within
economic recovery funding, devoting more than
$184 billion of public stimulus investments to
the sector. The true impact of that support isstill to come, with the bulk of the funds reaching
innovators, businesses and installers in 2010
and 2011.
CHINA TAKES THE LEAD,
WHILE THE U.S. SLIPS
China is emerging as the world’s clean energy
powerhouse. For the first time, China took the top
spot for overall clean energy finance and investment
in 2009, pushing the United States into secondplace. Having built a strong manufacturing base
and export markets, China is working now to meet
domestic demand by installing substantial new
clean energy-generating capacity to meet ambitious
renewable energy targets.
FIGURE 5. FIVE-YEAR GROWTH IN
INVESTMENT
Turkey 178%
Brazil 148%
China 148%
United Kingdom 127%
Italy 111%
United States 103%
France 98%
Indonesia 95%
Mexico 92%
Rest of EU-27 87%
The United States ranked second in G-20 clean
energy investments for the first time in five years.
U.S. clean energy investments also fell 40 percent,compared with the previous year. Further declines
were avoided through long-term extension of
federal production and investment tax credits
and initial funding from the American Recovery
and Reinvestment Act, which helped to shore up
investments in the latter half of 2009. Despite
this influx of investment, there are reasons to be
concerned about the U.S. competitive position in
the clean energy marketplace.
FIGURE 4. TOP 10 IN CLEAN ENERGY
INVESTMENT
China $34.6 billion
United States $18.6 billion
United Kingdom $11.2 billion
Rest of EU-27 $10.8 billion
Spain $10.4 billion
Brazil $7.4 billion
Germany $4.3 billion
Canada $3.3 billion
Italy $2.6 billion
India $2.3 billion
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1. China $34.6 billion2. United States $18.6 billion3. United Kingdom $11.2 billion4. Rest of EU-27 $10.8 billion
(this category includes Austria, Belgium, Bulgaria, Cyprus,Czech Republic, Denmark, Estonia, Finland, Greece, Hungary,Ireland, Latvia, Lithuania, Luxembourg, Malta, the Netherlands,Poland, Portugal, Romania, Slovakia, Slovenia and Sweden)
RANK INVESTMENT RANK
FIGURE 6. G-20 MEMBERS’ INVESTMENT IN CLEAN ENERGY AND THEIR RANK
5. Spain6. Brazil7. Germany8. Canada9. Italy10. India11. Mexico12. France
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NVESTMENT RANK INVESTMENT
13. Turkey $1.6 billion14. Australia $1 billion15. Japan $800 million16. Indonesia $354 million17. South Africa $125 million18. Argentina $80 million19. South Korea $20 million
$10.4 billion$7.4 billion$4.3 billion$3.3 billion$2.6 billion$2.3 billion$2.1 billion$1.8 billion
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Even though overall clean energy finance and
investment in the United States more than doubled
during the past five years, its growth rate laggedbehind five other G-20 countries: Turkey (178
percent), Brazil and China (148 percent each),
the United Kingdom (127 percent) and Italy (111
percent). In addition, the policy framework in the
United States for reducing global warming pollution
and increasing renewable energy remains uncertain,
with comprehensive legislation stalled in Congress.
Other countries with strong clean energy policies—
the United Kingdom, Germany, Spain and Brazil—
remained leaders in 2009.
For additional detail on the performance of individual
G-20 members, see Global Clean Energy Economy
at a Glance on Page 14 and the country profiles
beginning on Page 21.
DOMESTIC POLICY CHOICES
PLAY A CRITICAL ROLE
Domestic policy decisions appear to have shifted
the competitive positions of G-20 member
countries. Nations such as China, Brazil, Germany
and Spain, which have adopted national renewable
energy and energy efficiency standards, feed-in
tariffs,3 carbon reduction targets and/or financial
incentives for investment and production, are
assuming leadership positions in the clean energy
sector. China, for example, has set ambitious
targets for wind, biomass and solar energy. EU
members have an economywide cap on carbon
emissions and ambitious reduction goals. Brazil has
set ambitious targets for ethanol fuel.
Other nations seeking to compete effectively
for clean energy jobs and manufacturing could
mimic the array of policy mechanisms that can be
employed to stimulate clean energy investment.
The United States is a case in point. With a mixed
policy framework (for instance, no carbon policy and
a patchwork of state renewable energy standards),
the United States has a comparatively weak clean
energy economy given the relative size of its overall
economy. The United States, with 0.13 percent,
ranked 11th among G-20 nations for 2009 in
clean energy investment intensity—clean energy
investment as a percentage of gross domestic
product (Figure 7). However, with significantnatural and intellectual resources and a strong
culture of entrepreneurship, a strengthened policy
framework could enable the United States to regain
a leadership role in the coming years.
WIND AND SOLAR LEAD INVESTMENTS
The wind energy sector was the primary recipient
of clean energy investment in 2009, reflecting its
mature status as a large-scale power generation
source. Wind energy accounts for more than 50percent of worldwide clean energy investment
and almost half of installed clean energy capacity
worldwide. Recognized as a clean, safe, price-
competitive resource, wind energy is being
deployed as an important new source of electricity
generation in the leading clean energy economies.
The solar sector, on the strength of U.S., Spanish
3 Feed-in tariffs are a policy mechanism to incentivize renewable energy production. They guarantee that electricity generated from renewable energy sources will be purchased byutilities at a set price over the life of a contract, usually long-term.
FIGURE 7. TOP 10 IN INVESTMENT
INTENSITY
Spain 0.74%
United Kingdom 0.51%
China 0.39%
Brazil 0.37%
Rest of EU-27 0.26%
Canada 0.25%
Turkey 0.19%
Germany 0.15%
Italy 0.14%
Mexico 0.14%
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and EU investments, also figures prominently in
G-20 investment portfolios. Although smaller in size
than its wind energy counterpart, the solar sector ispoised to expand. Solar energy prices have declined
significantly in recent years, and the potential of
new, thin-film technologies positions solar for
significant growth.
By contrast, the sharp spikes in biofuel investment
that occurred from 2006 to 2007 have plunged in
the last two years.
ASSET FINANCING DOMINATESPew identified trends in three types of investments
and financing that are critical to technology R&D,
manufacturing scale-up and project rollout in the
clean energy sector:
1. Asset financing. Typically associated with
the installation of clean energy equipment
and generating capacity, asset financing is
the dominant class of clean energy finance.
Because of the fiscal crisis, asset financing
in 2009 fell 6 percent from the year before.
Still, $94.9 billion, more than 80 percent
of all clean energy financing, was invested
in physical assets that generate energy
(power, heat, fuels), with onshore wind
being the dominant sector because of its
relative maturity and scalability. China was
the leader in asset financing, followed by
the United States.
2. Public market financing. This class,which includes initial public offerings
(IPOs), enables companies to raise capital
for expansion and growth. In 2007, public
funding peaked at $23 billion. But G-20
public offerings declined by 45 percent over
the last two years, with many companies
canceling their IPOs because of poor
market conditions. Total public fundraising
of $12.1 billion in 2009 constituted less
than 11 percent of G-20 clean energy
investment. However, an extended
IPO drought was broken late in 2009,
particularly in China.
3. Venture capital/private equity financing.
This class is closely linked with technology
innovation and development. Reflecting
the overall market downturn, venture
capital/private equity financing dropped
43 percent in 2009, to $6.4 billion. The
United States remained the overwhelming
leader in venture capital investment, with
priority given to next-generation biofuels,
advanced solar, energy efficiency and smart
grid technologies. Brazil came in a distant
second.
RENEWABLE CAPACITY
GROWING WORLDWIDE
The United States led the world in installed wind,
biomass and geothermal power capacity but
was very close to losing its top position in overall
installed capacity as China surged forward. Despite
pioneering development of numerous key solartechnologies, the United States lagged well behind
G-20 leaders in installed solar capacity. Germany
was the undisputed leader in the solar sector.
The advent of regional and global carbon trading
markets, along with strong policy frameworks in
countries such as Spain, Brazil, India and China,
accounts for the relative strength of these nations’
clean energy sectors.
GOVERNMENTS ALLOCATE STIMULUS
FUNDS TO CLEAN ENERGY
Global stimulus plans target $184 billion for clean
energy, led by the United States ($67 billion) and
China ($47 billion). By the end of 2009, only 9
percent ($16.6 billion) had reached the sector, with
the United States and South Korea spending the
most to date. Two-thirds of the stimulus funding is
projected to be spent during 2010 and 2011.
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About the Investment Data
This report presents data on 2009 clean energy finance and investment in G-20 nations. The
primary focus of this report is on investment because it propels the innovation, commercialization,
manufacturing and installation of clean energy technologies. Public and private investments in R&D
(totaling some $25 billion in 2009) are not included in the G-20 investment presentations. No data
are presented for G-20 members Russia and Saudi Arabia because clean energy investment there
negligible. Spain, a member of the European Union but not an individual member of the G-20, is
presented independently in this report in view of the size and relevance of its clean energy sector.
For more details on the research methodology underlying this report, please see the appendix.
Bloomberg New Energy Finance tracks thousands of transactions across the spectrum of clean
energy finance, from R&D funding and venture capital invested in technology and early-stage
companies, to the public market and asset financing used to finance business growth and clean
energy deployment. The key investment categories are:
Asset Financing: This category includes all money invested in renewable energy
generation projects, whether from internal company balance sheets, debt finance or
equity finance. It excludes refinancing and short-term construction loans. Asset financing
typically is associated with installation of clean energy equipment and generating
capacity.
Public Markets: This category includes all money invested in the equity of publicly traded
companies developing renewable energy technology and clean power generation.
Public market finance is typically associated with the scale-up phase, when companies
are raising capital in public stock markets to finance product manufacturing and rollout.
Investment in companies setting up generating capacity is included in the next category.
Venture Capital/Private Equity : This category includes all money invested by venture
capital funds in the equity of companies developing renewable energy technology. In
general, venture capital is invested at the innovation stage, when companies are proving
the market potential of goods and services.
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America’s Clean Energy Economy
Pew first documented the clean energy economy in the United States in June 2009 in its report
The Clean Energy Economy: Repowering Jobs, Businesses and Investments Across America.
According to Pew, “a clean energy economy generates jobs, businesses and investments while
expanding clean energy production, increasing energy efficiency, reducing greenhouse gas
emissions, waste and pollution, and conserving water and other natural resources.” The definition
provides a groundbreaking framework for tracking jobs, investments and economic growth and
for allowing the public and private sectors to evaluate the effectiveness of policy choices and
investments.
The study found that clean energy is emerging as a vital new sector in the U.S. economic
landscape. It counted jobs, companies and investments in every state and found that from 1998
to 2007, jobs in the clean energy sector grew 2.5 times faster than jobs overall. By 2007, the lastyear for which data are available, more than 68,000 businesses across 50 states and the District
of Columbia had created 770,000 jobs in the clean energy economy. Further, our research showed
that these jobs are poised for even greater growth, driven by increasing consumer demand,
venture capital infusions by investors eager to exploit new market opportunities, and state and
federal policy initiatives. “Clean tech is where [information technology] was 30 years ago and
biotech was 20 years ago; we’re way early in the innovation cycle,” said David Prend, managing
partner of RockPort Capital and director of the National Venture Capital Association.
Technology
Research
Technology
Development
Manufacturing
Scale-Up
Rollout(Asset Finance)
Government
Venture Capital
Private Equity
Process
Funding
Key: Public Equity Markets
Mergers and Aquisitions
Credit (Debt) Markets
Carbon Finance
FIGURE 8. THE SUSTAINABLE ENERGY FINANCING CONTINUUM
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OVERALL
Five-Year Surge in Clean Energy Investment:
Between 2005 and 2009, clean energy investments
increased 230 percent globally. In the past two
years, G-20 members invested an average of
$32 billion each quarter in the sector. Installed
renewable energy capacity in 2009 increased to
250 GW, enough to power an estimated 75 million
households and equivalent to 6 percent of the
worldwide energy generation total.
Clean Energy Economy Weathers the Global
Financial Crisis: In 2009, more than $162 billion
was invested globally. In the face of the global
economic downturn, that figure declined only 6.6
percent compared with 2008. Moreover, the clean
energy sector outperformed the oil and gas industry,
which had investment declines of 19 percent
in 2009, according to the International Energy
Agency’s 2009 World Energy Outlook .
G-20 Countries Dominate the Clean Energy
Economy, Compete for Leadership: G-20
countries account for more than 90 percent of allclean energy finance and investment. Countries
with strong policy frameworks (China, Germany,
Spain and Brazil, for example) have the strongest
clean energy sectors relative to the size of their
economies, while those with weaker policy
frameworks (such as the United States, Japan,
Australia and South Africa) lag behind their G-20
counterparts.
Countries Prioritize Clean Energy in Recovery
Strategies: Global stimulus plans target $184 billion
for clean energy, led by the United States ($67billion) and China ($47 billion). The full impact is still
ahead: In 2009, less than 10 percent of these funds
reached the clean energy sector; two-thirds of the
stimulus funding is projected to be spent during
2010 and 2011.
Asian Investment Soars in 2009: Clean energy
investment in Asia increased 37 percent in 2009
to $39.02 billion. Strong demand for wind power in
China and the availability of credit in Asian markets
drove growth in the region. By contrast, investment
declined 33 and 16 percent, respectively, in the
Americas and Europe as the economy slowed,
energy demand sagged and credit markets
tightened.
2009 Venture Capital Investments Drop More
Than 40 Percent: Venture capital investments fell
more than 40 percent, to $6.4 billion. The United
States still dominates this asset class, accounting
for 60 percent of all venture capital/private equity
financing.
Estimated $200 Billion to Be Invested in 2010 in
Energy, Climate and Jobs: The ongoing priority for
energy security, global warming pollution reduction
and job creation will drive investment up 25 percent
to a record $200 billion in 2010, Bloomberg New
Energy Finance forecasts.
Looking Ahead
Pew is working on a second report that will investigate the direction of the clean energy economy
in G-20 countries in the years to come. That report will harness Bloomberg New Energy Finance’s
advanced modelling capabilities to explore the contribution clean energy can make to the world’s
economic and environmental future if certain policies and measures are adopted nationally by
governments to accelerate private finance and investment.
The Global Clean Energy Economy at a Glance
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COMPETITIVENESS SNAPSHOTS
OF G-20 MEMBERS
China: With clean energy investments up morethan 50 percent in 2009, China took the lead
among G-20 nations for the first time. China’s 2009
financing totaled $34.6 billion (Figure 4). Ambitious,
mandatory targets for wind and solar power and
the ample availability of credit in China have been
the primary engines of that nation’s clean energy
growth. Having built a strong manufacturing base
and export markets, China is working now to meet
domestic demand by installing substantial new
clean energy generating capacity to achieve its
renewable energy targets.
United States: The United States closed 2009
with total investments of $18.6 billion. The United
States lost the top spot in the G-20 for the first
time in five years. The economic recession and
investor uncertainty about tax incentives early in
the year slowed investments, which were down
40 percent from 2008 levels. State renewable
energy standards and enactment of longer-term
production and investment tax credits in February
spurred substantial investments later in 2009. The
United States continued to dominate the venture
capital/private equity investments associated with
technology innovation. Investors continued to
look to Congress to pass comprehensive climate
and energy legislation that will provide long-term
certainty for investment.
0 5000 10000 15000 20000 25000 30000 35000
Efficiency & low carbon
tech/services
Biofuels
Other renewables
Solar
Wind
Argentina
South Africa
Indonesia
Japan
Australia
Turkey
France
Mexico
India
Italy
Canada
Germany
Brazil
Spain
Rest of EU-27United Kingdom
United States
China
FIGURE 10. INVESTMENT BY SECTOR, 2009 (billions of $)
34.6
18.6
11.210.8
10.4
7.4
4.3
3.3
2.6
2.3
2.1
1.8
1.6
1.0
0.8
0.4
0.1
0.1
United Kingdom: Large offshore wind deals
backed by the government put the United Kingdom
in third place in the G-20, with 2009 investments of$11.2 billion. The United Kingdom also was at the
forefront of marine energy investments.
Spain: Within the European Union, Spain remained
a clean energy leader with 2009 investments of
more than $10 billion, much of it in solar energy.
Spanish budget constraints forced cutbacks in
incentive programs, which significantly curtailed
2009 investments and will likely continue to do so
in the future.
Brazil: Brazil, which is poised for significant growth
in wind energy investments, stood out as a G-20
leader. Brazil invested $7.4 billion in clean energy
in 2009.
Germany: Germany remained a clean energy
stalwart in terms of manufacturing and installed
capacity, especially in the solar sector. Overall,
Germany invested $4.3 billion in clean energy
in 2009.
European Union: EU carbon policies established
European renewable energy markets early, and
investment and installed capacity continue at a
steady pace across Europe.
0 5000 10000 15000 20000 25000 30000 35000
Venture capital/private equity
Public markets
Asset finance
Argentina
South Africa
Indonesia
Japan
Australia
Turkey
France
Mexico
India
Italy
Canada
Germany
Brazil
Spain
Rest of EU-27United Kingdom
United States
China
FIGURE 9. INVESTMENT BY FINANCING TYPE, 2009 (billions of $)
34.6
18.6
11.210.8
10.4
7.4
4.3
3.3
2.6
2.3
2.1
1.8
1.6
1.0
0.8
0.4
0.1
0.1
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ASSET FINANCING
Asset financing, typically associated with the
installation of clean energy equipment and
generating capacity, is a barometer of clean energy
deployment and the creation of new jobs. It is the
dominant class of clean energy finance.
Because of the financial crisis, asset financing in
2009 was down 6 percent from 2008. Still, more
than 80 percent of all clean energy financing ($95
billion) was invested in physical assets that generate
energy (power, heat, fuels), with onshore wind
being the dominant sector because of its relative
maturity and scalability (Figure 11).
Key observations include:
Asset financing in clean energy increased
threefold from 2005 levels. These
investments helped increase total installed
renewable energy capacity to 250 GW
worldwide.
China led the way in asset financing with
investments of $29.8 billion, 86 percent of
its total clean energy financing (Figure 12).
The United States was next with $11.2
billion, followed by the United Kingdom at
$10.7 billion, much of it focused on offshore
wind assets. Spain was the other top assetfinancing destination with $10.4 billion.
U.S. asset financing was down in response
to the financial crisis, uncertainty about
the Production Tax Credit and a lack of
credit liquidity. Asset financing for biofuels
production in the United States also
contracted significantly from 2006-07 highs.
0
0000
0000
0000
0000
0000
0000
Biofuels
Solar
Other renewables
Wind
200920082007200620052004
llFIGURE 11. ASSET FINANCE BY SECTOR, 2004-09 (billions of $)
13.8
29.1
55.5
83.4
101.4
94.9
0 5000 10000 15000 20000 25000 30000
Biofuels
Other renewables
Solar
Wind
Argentina
South Africa
Japan
Indonesia
Australia
India
Turkey
France
Mexico
Canada
Italy
Germany
Brazil
Rest of EU-27
Spain
United Kingdom
United States
China
FIGURE 12. ASSET FINANCE BY SECTOR, 2009 (billions of $)
- ll
29.8
11.2
10.7
10.4
9.1
6.7
3.7
2.6
2.1
2.1
1.7
1.6
1.6
0.9
0.4
0.2
0.1
0.1
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PUBLIC MARKET FINANCING
Public market financing enables companies to raise
capital for expansion and growth.
As the clean energy economy emerged in the
middle of the past decade, many clean energy
companies used stock markets to fund their growth
plans. At its peak in 2007, public market funding
reached $22 billion (Figure 13). But G-20 public
offerings declined by 45 percent in the past two
years, with many companies canceling their IPOs
because of poor market conditions. Total public
fundraising of $12.1 billion in 2009 constituted less
than 11 percent of G-20 clean energy investment
(Figure 14). However, an extended IPO drought was
broken late in 2009.
l
r r l
l r
r
l r
l
r l
r
r l
r
-
0
5000
000
000
000
000
Other renewables
Biofuels
Efficiency & low carbon
tech/services
Wind
Solar
200920082007200620052004
llFIGURE 13. PUBLIC MARKET INVESTMENT BY SECTOR, 2004-09 (billions of $)
0.9
4.9
11.2
22.2
13.7
12.1
Key observations include:
Investor demand, which had inflated clean
energy company valuations significantly,collapsed during the financial crisis,
lowering stock prices and dramatically
slowing market investment in the sector.
Established companies are now raising
capital to strengthen their balance sheets
rather than to fund growth plans.
Nonetheless, European wind and solar
companies are financing expansion oftheir manufacturing capacity and project
portfolios.
Strong IPO activity occurred in China in late
2009 to finance growth in manufacturing
capacity.
0 1000 2000 3000 4000 5000
Biofuels
Other renewables
Efficiency & low carbon
tech/services
Solar
Wind
Italy
Spain
Brazil
France
Australia
United Kingdom
Germany
Japan
India
Canada
Rest of EU-27
United States
China
r r l
l
l r
r
l r
FIGURE 14. PUBLIC MARKET INVESTMENT BY SECTOR, 2009 (billions of $)
- ll
4.6
3.6
1.1
1.0
0.7
0.6
0.4
0.1
0.1
~0
~0
~0
~0
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VENTURE CAPITAL/PRIVATE
EQUITY FINANCING
Venture capital and private equity financing areclosely linked with technology innovation and
development (Figure 15).
Reflecting the overall market downturn, this class
of clean energy finance was down 44 percent in
2009. The United States remained the enduring
leader in venture capital investment, reflecting its
strong foundation of technology innovation (Figure
16). Brazil came in a distant second, while venture
capital investments in other developing countries
such as China and India were negligible.
Key observations include:
There was a significant influx of venture
capital into next-generation biofuels such as
cellulosic and algae fuels.
New solar and energy efficiency/smart grid
technologies also saw substantial venture
capital investment.
In response to the financial crisis, venture
capitalists retreated from new companies
and concentrated instead on well-
established entities. For example, in 2009
there were only 70 investments in Series A
shares (first stock offerings by a company)
compared with 150 in 2007.
This situation could persist until venture
capitalists shift investments as companiesscale up with public market financing.
0
2000
4000
6000
8000
10000
12000
Other renewables
Solar
Wind
Biofuels
Efficiency & low carbontech/services
200920082007200620052004
1.4
2.3
5.1
7.1
11.3
6.4
FIGURE 15. VENTURE CAPITAL/PRIVATE EQUITY FINANCING BY SECTOR,
2004-09 (billions of $)
0 500 1000 1500 2000 2500 3000 3500 4000
Other renewables
Biofuels
Wind
Solar
Efficiency & low carbon tech/services
Australia
Italy
Spain
India
France
China
Germany
Canada
United Kingdom
Rest of EU-27
Brazil
United States
r r l
l r
l
l r
r
3.9
0.7
0.6
0.5
0.2
0.2
0.2
0.1
0.1
~0
~0
~0
FIGURE 16. VENTURE CAPITAL/PRIVATE EQUITY FINANCING BY SECTOR,
2009 (billions of $)
- ll
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INSTALLED RENEWABLE
ENERGY CAPACITY
The total global renewable energy capacity is 250GW. Key observations include:
At the end of 2009, the United States led
the world in installed wind, biomass (Figure
17) and geothermal power capacity (Figure
18) but was very close to losing its lead in
overall installed capacity to China. Despite
pioneering development of numerous key
solar technologies, the United States lags
well behind G-20 leaders in installed solar
capacity.
Germany is the undisputed leader in the
solar sector with a total installed capacity of
5.3 GW. Japan and Spain, both with about
2.1 GW, were the next-leading countries for
installed solar power capacity.
China doubled its wind capacity in 2009 in
pursuit of an ambitious target of installing
30 GW of wind by 2020. China also led the
G-20 in small hydro capacity and moved
aggressively in the solar sector.
The advent of regional and global carbon
trading markets, along with strong policy
frameworks in countries such as Spain,
Brazil, India and China, accounts for the
relative strength of these nations’ clean
energy sectors.
China
United States
Germany
Spain
India
Rest of EU-27
Japan
France
Brazil
Italy
Canada
United Kingdom
Australia
Russia
Mexico
Turkey
Argentina
South Korea
South AfricaIndonesia
Wind
Small hydro
Biomass and waste
FIGURE 17. INSTALLED RENEWABLE ENERGY CAPACITY, 2009 (in GW)
(wind, small hydro, biomass and waste)
~0
0.4
0.5
0.5
0.6
1.7
2.7
3.2
7.3
7.5
8.6
8.9
9.0
10.1
11.6
16.2
20.2
30.9
49.7
52.2
-
-
Solar
Geothermal
Marine
FIGURE 18. INSTALLED RENEWABLE ENERGY CAPACITY, 2009 (in GW)
(solar, geothermal, marine)
Germany
United States
Japan
Spain
Mexico
Italy
Indonesia
Rest of EU-27
France
South Africa
China
IndiaSouth Korea
United Kingdom
Brazil
Russia
Canada
Australia
Turkey
Argentina~0
0.1
0.1
0.1
0.1
0.1
0.2
0.2
0.3
0.3
0.3
0.5
0.7
1.0
1.1
1.5
2.1
2.7
3.7
5.3
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G-20 STIMULUS FUNDING
FOR CLEAN ENERGY
An estimated $184 billion was earmarked forclean energy by the various government stimulus
packages announced in late 2008 and early 2009.
Key observations include:
The greatest amount of stimulus money
was allocated for clean energy by the
United States and China.
By the end of 2009, only 9 percent ($16.6
billion) had reached the sector. The most
money had been spent by the United States(about $8 billion) and South Korea (nearly
$3.3 billion).
According to industry estimates, two-thirds
of financial recovery funding is projected to
be spent during 2010 and 2011.
The United States allocated stimulus
funding for energy efficiency, renewable
energy deployment, transportation andsmart grid technology.
China intends to spend $46.9 billion in
stimulus funding on energy efficiency,
clean vehicles, grid infrastructure and other
clean energy technology. Its “Golden Sun”
initiative will grant up to 50 percent of the
installation cost of photovoltaic power
plants in China.
The South Korean government intends to
increase its share of the overseas green
market by allocating stimulus funding to
boost exports of LED lighting products,
solar cells, hybrid cars and other low-carbon
technology products.
$66.6
$46.9
$27.8
$12.7
$8.6
$3.6
$4.2
$4.1
$3.7
$2.7
$2.5
$1.0
United States
China
South Korea
Rest of EU-27
Japan
Germany
Australia
United Kingdom
Spain
France
Brazil
Canada
FIGURE 19. ANNOUNCED 2008-09 STIMULUS FUNDING (billions of $)
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G-20 Country Profiles
GROWTH, COMPETITION AND OPPORTUNITY IN THE WORLD’S LARGEST ECONOMIES
The following pages profile the clean energy sector in each of the G-20 member countries. These profiles
highlight each country’s priorities and progress, along with key renewable energy targets and incentives
developed to encourage growth in the clean energy sector.
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APPENDIX: METHODOLOGY
All figures in this report, unless otherwise credited, are based on the output of the Desktop database of
Bloomberg New Energy Finance, an online portal to the world’s most comprehensive database of investors,
projects and transactions in clean energy. Data are categorized by country. Members of the European Union
not profiled individually here are aggregated as “Rest of the EU-27.”4
The Bloomberg New Energy Finance Desktop collates all organizations, projects and investments according
to transaction type, sector, geography and timing. It covers 11,000 transactions, 20,000 projects and 30,000
organizations (including start-ups, corporations, venture capital and private equity providers, banks and other
investors).
Research included the following renewable energy projects: all biomass, geothermal and wind generation
projects of more than 1 megawatt, all hydro projects of between 0.5 and 50 megawatts, all solar projectsof more than 0.3 megawatts, all marine energy projects, and all biofuel projects with a capacity of 1 million
liters or more per year.
Annual investment in small scale and residential projects, such as micro wind turbines, solar water heaters
and bio-digesters, is estimated. These estimates are based on annual installation data, provided by industry
associations and REN21.5
Energy efficiency investment includes financial investment in technology companies plus corporate and
government investment in R&D. It excludes investment in energy efficiency projects by governments and
public financing institutions. Where deal values are not disclosed, Bloomberg New Energy Finance assigned
an estimated value based on comparable transactions. Deal values are rigorously rechecked and updated
when further information is released about particular companies and projects. The statistics used are historic
figures, based on confirmed and disclosed investment.
Bloomberg New Energy Finance continuously monitors investment in renewable energy and energy
efficiency. This is a dynamic process. As the sector’s visibility grows, information flow improves. New deals
come to light and existing data are refined, meaning that historical figures are constantly updated. The data
published in this report are current as of March 2010.
4 The “Rest of the EU-27” category includes Austria, Belgium, Bulgaria, Cyprus, the Czech Republic, Denmark, Estonia, Finland, Greece, Hungary, Ireland, Latvia, Lithuania,
Luxembourg, Malta, The Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia and Sweden.
5 REN21 is an independent, international nongovernmental organization that chronicles renewable energy trends around the world and connects governments, industry,
organizations and others to encourage rapid expansion of renewable energy worldwide.
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